Central bank leaves interest rates unchanged

TAIPEI (CNA) — Taiwan’s central bank has decided to leave its key interest rates unchanged after concluding a quarterly policymaking meeting Thursday.

The discount rate will therefore stand at 1.125 percent, still the lowest level in the country’s history.

In its previous quarterly policymaking meeting held in March, the central bank lowered interest rates by 0.25 percentage points, marking the first rate reduction after leaving interest rates unchanged for 14 consecutive quarters, at a time when the global economy faced strong headwinds caused by the COVID-19 coronavirus.

The move by the central bank to maintain its monetary policy in Thursday’s meeting had been expected by the market.

Economists have said that the local market remained awash in liquidity and that it was unnecessary for the bank to cut interest rates for the moment, adding that the local economy remains resilient as the country has been doing well to contain the virus, despite the pandemic hitting the global economy badly.